On October 15, 1998, BC Gas Utility Ltd. (BC Gas) filed an application with the Office
of Fossil Energy of the Department of Energy (DOE), under section 3 of the Natural Gas Act
(NGA)(1) and DOE Delegation Order Nos. 0204-111 and 0204-127, for blanket authorization to
import up to 25 Billion cubic feet (Bcf) and to export up to 25 Bcf of natural gas from and to
Canada. The authorization would be for a two-year term beginning on the date of first delivery
after November 30, 1998.(2) BC Gas, a Canadian corporation with its principal place of business
in Vancouver, British Columbia, is a local gas distribution company which serves mostly
residential customers in western Canada. BC Gas will import and export natural gas under short-term and spot purchase arrangements for its own account and as agent for others. The proposed
authorization does not involve the construction of new pipeline facilities.

II. FINDING

The application filed by BC Gas has been evaluated to determine if the proposed import
and export arrangement meets the public interest requirement of section 3 of the NGA, as
amended by section 201 of the Energy Policy Act of 1992 (Pub. L. 102-486). Under section 3(c),
the import or export of natural gas from or to a nation with which there is in effect a free trade
agreement requiring national treatment for trade in natural gas, is deemed to be consistent with
the public interest and must be granted without modification or delay. The authorization sought
by BC Gas to import and export natural gas, from and to Canada, a nation with which a free trade
agreement is in effect, meets the section 3(c) criterion and, therefore, is consistent with the public
interest. This blanket order authorizes transactions under contracts with terms of no longer than
two years.

ORDER

Pursuant to section 3 of the Natural Gas Act, it is ordered that:

A. BC Gas Utility Ltd. (BC Gas) is authorized to import up to 25 Billion cubic feet (Bcf)
and to export up to 25 Bcf of natural gas from and to Canada. The term of the authority is for
two years beginning on the date of first delivery after November 30, 1998.

B. This natural gas may be imported and exported at any point on the border between the
United States and Canada.

C. Within two weeks after deliveries begin, BC Gas shall provide written notification of
the date that the first import or export delivery of natural gas authorized in Paragraph A above
occurred.

D. With respect to the natural gas imports and exports authorized by this Order, BC Gas
shall file with the Office of Natural Gas & Petroleum Import and Export Activities, within 30 days
following each calendar quarter, quarterly reports indicating whether imports or exports of natural
gas have been made. Quarterly reports must be filed whether or not initial deliveries have begun.
If no imports or exports of natural gas have been made, a report of "no activity" for that calendar
quarter must be filed. If imports or exports have occurred, BC Gas must report the following:

(1) total monthly volumes in Mcf; (2) the average monthly purchase price of gas per MMBtu at
the international border; (3) the name of the seller(s); (4) the name of the purchaser(s); (5) the
estimated or actual duration of the agreement(s); (6) the name of the U. S. transporter(s); (7) the
point(s) of entry and exit; and (8) the geographic market(s) served (for imports, by State). For
import transactions only, the report shall also include: (1) whether sales are being made on an
interruptible or firm basis; and (2) the per unit (MMBtu) demand/commodity/reservation charge
breakdown of the contract price.

E. The first quarterly report required by Ordering Paragraph D of this Order is due not
later than January 30, 1999, and should cover the period from December 1, 1998, until the end of
the fourth calendar quarter, December 31, 1998.